Homeowners Coverage 101

Homeowners insurance is vital protection for every homeowner. Suppose you are getting ready to buy a home and home insurance. In that case, reviewing what is typically included in home insurance and what perils may be excluded under a standard homeowners insurance policy is a good idea. For these hazards, you may want to buy additional insurance protection. The Home Loan Insurance team can help you get the coverage you need to insure your home suitably.

What Is Covered by Homeowners Insurance?

Homeowners insurance may give a policyholder many protections. Depending on your specific policy, you may have coverage for your property, which may help with the costs associated with repairing or rebuilding your dwelling and structures after a covered incident, as well as your personal property or belongings. In addition, your home policy typically includes liability coverage so that if you or an insured person on your policy causes third-party bodily injury or property damage, or a guest is injured on your property, there is protection. Finally, if you must temporarily move from your home because of damage, your policy may cover your additional living expenses—hotel, meals and other living expenses—up to your policy limit.

What Is Excluded from Homeowners Insurance?

A standard homeowners insurance policy has many exclusions, some related to major events and others more home-specific. Typically, a home policy doesn’t cover significant damaging occurrences such as floods, government actions such as seizures, nuclear accidents or war. There are also “closer to home” items that may be excluded, including bedbugs and termites, mold, sewer backups and outdoor recreational equipment (e.g., diving boards, trampolines, tree houses). There may be additional lines of coverage or endorsements that you can purchase to gain coverage for some of these.

These exclusions aren’t comprehensive; there may be additional ones that may be uninsurable. We can help you explore what supplemental coverage or other assistance may be available and beneficial.

Can Supplemental Insurance Help?

Various other types of coverage may help protect your Colorado home. You may want to discuss any supplemental policies with your insurer to ensure they benefit your specific home situation.

• Sewer backup endorsement may be available to add to your home policy and may help cover damage related to a sewage backup—but not the physical damage. However, an endorsement may be beneficial, and we may be able to help.
• Earthquake insurance may protect against damage to your home and personal property and provide additional living expenses if you temporarily need to live somewhere else after an earthquake.
• Flood insurance may be beneficial if you live in a flood-prone area. Your lender may require you to carry flood insurance if you finance your home and live near water.

Can You Insure for Mold, Termites and Bedbugs?

Some homeowners may discover unexpected damage due to mold, termites or bedbugs. Some homeowner policies may cover mold if a sudden or accidental peril causes it, but exceptions exist. We can discuss if your policy may qualify for this or if you may need to pay for professional help. You must contact a pest control company if you have a termite or bedbug infestation. Most pest control professionals offer inspections, treatments and warranties for their work, which may protect your home from further damage.

Safeguard Your Dwelling

An essential part of buying a home is to have a professional inspection, which may reveal if your home may have issues that would benefit from additional insurance protection or other professional help. Another essential part of your home purchase is to work with an insurer to get the homeowners insurance policy that may help protect you from the potential perils you may face.

Since 1897, Home Loan Insurance has provided insurance solutions to the homeowners of Grand Junction. Call us at 970-243-6600 to get your no-obligation quote on homeowners insurance for your dwelling.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.